Royal Caribbean warns of more cruise cancellations over coronavirus threat

The launch of Royal Caribbean International's Oasis of the Seas, the worlds largest cruise ship. Aerial views off Miami.Michel Verdure / Michel Verdure

Royal Caribbean Cruises Ltd on Tuesday warned of more cruise cancellations after calling off eight trips out of China through March 4 due to the coronavirus outbreak.

The company said it expects the cancellations to trim its first-quarter earnings by 25 cents per share, but added that there are too many uncertainties to give a good estimate of the impact.

“It seems likely that we will have to cancel more, but we don’t yet know how many,” Chief Executive Officer Richard Fain said on the post-earnings conference call.

Royal Caribbean also said it would deny boarding to people who had visited mainland China or Hong Kong over the past 15 days. It will also screen Chinese and Hong Kong passport holders and people showing flu-like symptoms, including its own staff.

The company had expected China to account for 6% of its overall capacity in 2020 and 4% of the total capacity in the first quarter, Fain said.

Royal Caribbean, the second-biggest cruise operator by market valuation, currently has one ship, Spectrum of the Seas, whose port of origin is Shanghai in China, with two more cruise liners expected to join in May and July.

The company had earlier cancelled three trips scheduled for February, after consultation with health authorities over the spread of the virus, which has killed more than 400 people and infected thousands in China.

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